Microsoft Corporation (NDAQ:MSFT) and
Google Inc.
(NDAQ:GOOG) have reportedly offered to invest anywhere between $300
million and $500 million for a 5% stake in the social networking giant
Facebook. Many investors are carefully watching this deal as it could
open the door to many opportunities.
First, there is speculation
that the social networking website will use some of the money to build
out its own advertising platform that could help boost its somewhat
lackluster $150 million per year in revenues. Specifically, the company
may use the cash infusion to buy a behavioral advertising company.
Many
also insist that Facebook may have an interest in going public. After
all, with its own stock it would be able to quickly make acquisitions
and ramp up its operations. Obviously, any initial offering in this
sector would be a hot IPO that is definitely worth watching closely.
In
the end, Facebook will no longer have the time to invent new addons and
services for its company. It will likely be forced to hire new
engineers or acquire companies with products to fill their void to
maintain strong growth. However, it is still uncertain as to whether
the company will remain private, pursue a buyout or go public.
Combined, these factors make Facebook and other players like MSFT and
GOOG stocks worth watching!
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